NYSE gets nod to allow capital raising via direct listings

It will widen the options available to private companies that are looking to go public, but are wary of the role played by investment banks in the traditional IPO process.

NEW YORK: The U.S. Securities and Exchange Commission said on Wednesday it approved a proposal by the New York Stock Exchange to allow companies to raise capital through direct listings.

The move is a major breakthrough for the exchange operator that has been pushing for an alternative to traditional initial public offerings (IPOs) for companies to raise money.